Data from Singapore’s Land Transport Authority (LTA) revealed that private car ownership in the country has dropped to its lowest since 2019.
Ownership drops, rentals increase
Private car ownership in Singapore has dropped to its lowest level since 2019 while rental cars have increased. According to data from the LTA, there were 516,237 private cars registered in June 2026. Rental cars, on the other hand, amounted to 97,567 units this year.
The percentage of private cars have dropped to 79 per cent from 82.5 per cent in 2021. Rental cars have increased from 10.5 per cent of the national fleet to 14.9 per cent. This is the highest percentage of rental cars recorded so far.
That though the data reflects a preference for rentals over ownership, the LTA clarified that more information is needed to fully conclude that Singaporeans’ mobility preferences have changed. To gather more information, the LTA will include public transportation statistics, point-to-point trips, and ridesharing for both bicycles and cars.
Costs drive up rentals
The Straits Times interviewed expert Walter Theseira of Singapore University of Social Sciences on the issue. Theseira explained that the buying a car may not be economically feasible for those who do not need to drive every day.
In Singapore, a Certificate of Entitlement (COE) is needed to purchase a vehicle. COE prices change periodically with premiums costing up to SGD $130,889 (AUD $145,027). Previously in 2024, COEs were priced from SGD $65,010 (AUD $72,020) to SGD $116,002 (AUD $128,552).
Rental companies’ concern
Rental companies expressed that despite the rise in demand for rental cars, they remain cautious about purchasing more vehicles for their fleets. COE premium costs remain high, making another fleet purchase a risk.
According to Adrian Lee, president of Singapore’s Vehicle Rental Association, said that younger customers tend to use short-term rentals as a mode transportation. According to The Independent, the population of rental cars for self-driving increased to 36,317 units. Rental cars for private hire and ridesharing have declined to 61,250 units from 62,92 units.
Lee deduced that the change in rental car population may be cause by a new law requiring ride hailing cars to be used for three years in the industry before being sold to individuals.
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